Business studies test

An account typically used for day to day finances is known as a:

Saving accounts are primarily offered by building societies.

Tick all the borrowings that are classed as good debt.

Josie needs to buy a train ticket to London, She decides to purchase a ticket face-to-face to avoid [blank_start]hidden[blank_end] charges. However if she would of decided to purchase the ticket [blank_start]online[blank_end] she might have been charged with the hidden cost of delivery. Johnny, Josie's brother is starting high school and has been given a sum of £150 from his Grandma as a celebration gift. Josie is trying to educate Johnny on Value for money which means getting the [blank_start]best[blank_end] goods for the money [blank_start]available[blank_end]. On the majority of goods Value added tax (VAT) is charged at [blank_start]20%[blank_end] she informs johnny of this too.

Which of the following is the best short term borrowing solution for a person needing to get their car repaired?

Excessive borrowing has the greatest negative impact on a solid foundation for economic growth.

Steve's boiler has broken down. The repair company has been unable to fix the problem and has advised him that he needs to have a new one installed. It has quoted him £2,000. Steve has looked online and found that the majority of companies charge around £2,000. He feels this is a fair price. The repair company has also said that it has an insurance scheme he can join where, if he pays £20 a month, they will come out and sort any problems with the boiler for as long as he remains a member of the scheme. Steve thinks it is a good idea but, as he is already on a tight budget, he is unsure where he can find the extra £20 a month to pay for it. Steve's main expenditure items are his mortgage payments, household bills, car running costs and gym membership. Which of the following items of expenditure could Steve give up to raise funds to join the boiler insurance scheme?

Steve's boiler has broken down. The repair company has been unable to fix the problem and has advised him that he needs to have a new one installed. It has quoted him £2,000. Steve has looked online and found that the majority of companies charge around £2,000. He feels this is a fair price. The repair company has also said that it has an insurance scheme he can join where, if he pays £20 a month, they will come out and sort any problems with the boiler for as long as he remains a member of the scheme. Steve thinks it is a good idea but, as he is already on a tight budget, he is unsure where he can find the extra £20 a month to pay for it. Steve's main expenditure items are his mortgage payments, household bills, car running costs and gym membership. Which of the following would be the ideal solution for paying off Steve's new boiler?

Steve's boiler has broken down. The repair company has been unable to fix the problem and has advised him that he needs to have a new one installed. It has quoted him £2,000. Steve has looked online and found that the majority of companies charge around £2,000. He feels this is a fair price. The repair company has also said that it has an insurance scheme he can join where, if he pays £20 a month, they will come out and sort any problems with the boiler for as long as he remains a member of the scheme. Steve thinks it is a good idea but, as he is already on a tight budget, he is unsure where he can find the extra £20 a month to pay for it. Steve's main expenditure items are his mortgage payments, household bills, car running costs and gym membership. If Steve decided to borrow, his best course of action if interest rates rise in the near future will be to cut back:

Steve's boiler has broken down. The repair company has been unable to fix the problem and has advised him that he needs to have a new one installed. It has quoted him £2,000. Steve has looked online and found that the majority of companies charge around £2,000. He feels this is a fair price. The repair company has also said that it has an insurance scheme he can join where, if he pays £20 a month, they will come out and sort any problems with the boiler for as long as he remains a member of the scheme. Steve thinks it is a good idea but, as he is already on a tight budget, he is unsure where he can find the extra £20 a month to pay for it. Steve's main expenditure items are his mortgage payments, household bills, car running costs and gym membership. If Steve decided to borrow to fund his boiler purchase, which of the following products would take the most out of his monthly budget?